TIOL-DDT 1974 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=14276"><img src="http://www.taxindiaonline.com/RC2/image/ddt/ddt_1794.jpg" alt="DDT in Limca Book of Records" width="175" height="120" hspace="5" border="0" align="right"></a></font></strong></font><font color="#663399" size="3">TIOL-DDT 1974</font><br>
01.11.2012<br>
Thursday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Post Technical Member in Bangalore CESTAT - Tax Bar Urges President </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a letter addressed to the President of CESTAT, the Indirect Tax Practitioners' Association of Bangalore CESTAT urged the President to post a permanent Technical Member at Bangalore Bench of the CESTAT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The President of the Association BN Gururaj submits, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The pendency of appeals and interim applications at CESTAT, Bangalore may not be the highest in the country, but it is not negligible either. Since the filings of appeals and applications by the litigants continue on day-to-day basis, the pendency is growing steadily, with no sight of disposal in near future. This has already resulted in hardship to litigant public, on account of adjournments sine die.</em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is the experience of the litigants and the constituents of the Association that as soon as the months of November and December approach, every year, the Revenue takes coercive steps for recovery of adjudication dues. Hitherto, the practice was to mention such urgent matters before the Division Bench, so that such stay applications would be heard out of turn, after due notice to the Revenue. But, at present, in the absence of a Division Bench, and with no certainty as to when the Division Bench sitting will be resumed, the litigant public would be put to grave financial and other hardship. Even approaching the High Court for speedy hearing would be of no avail, when there is no competent Division Bench at all at Bangalore. In such situation, appellant-assessees would be left to the <strong>tender mercies</strong> of the Revenue Officers, resulting in injustice to them. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is under this circumstance that the Association sincerely requests the Hon'ble President to urgently look into this matter and transfer a Member (Technical) permanently, so that the hearings and disposals continue as usual. </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is not Bangalore alone that faces this problem; actually, Chennai is senior. There is no Bench at all in Chennai for the last few months. This means there is no working CESTAT Bench for the entire South India consisting of large States like Andhra Pradesh, Tamil Nadu and Karnataka and Kerala. There are 36 Commissionerates in these States and there are quite a few Commissioners (Appeals) and Commissioners (Adjudication) - all busy passing orders demanding tons of money. AND THERE IS NO FUNCTIONING APPELLATE FORUM. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is the problem? In this country, are we not able to get half a dozen lawyers and Commissioners who can be appointed as Members of the Tribunal? </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/Association_Letter.pdf" target="_blank">Indirect Tax Practitioners' Association Letter, Dated: October 31, 2012 </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT has power to condone delay in filing application consequent to Review by Committee of Chief Commissioners: SC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IF</strong> in the rarest of rare cases, a Commissioner passes an order in favour of an assessee, the order is promptly reviewed by the Committee of Chief Commissioners and invariably, the Committee directs the Commissioner to apply to the Tribunal to set aside his own order. The Committee is required to pass the review order within three months of the date of communication of the order and the Commissioner is to file the application with the Tribunal within one month of the receipt of the review order. Once such an application is filed by the Commissioner, it is treated as an appeal and all the appeal provisions will apply<em> mutatis mutandis</em>. (Section 129A in Customs cases). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, if the Commissioner fails to apply within one month as prescribed, can the Tribunal condone the delay. This was the issue before the Supreme Court in a case in which the judgement was delivered on 30th October 2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissioner had dropped proceedings against a CHA. The Committee directed the Commissioner to apply to the Tribunal to get his order set aside. The Commissioner made his application with a delay of ten days and filed a Condonation of Delay Petition. The Tribunal relied on the Larger Bench of the Tribunal decision in <em>CCEx. Mumbai vs. Azo Dye Chem</em> - <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2002/2002-TIOL-448-CESTAT-DEL-LB.htm"><strong><font size="1">2002-TIOL-448-CESTAT-DEL-LB</font></strong> </a>and held that <em>the</em> <em>Tribunal has no power to condone the delay caused in filing such appeals by the Department. See <strong><font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2005/2005-TIOL-165-CESTAT-MUM.htm" target="_blank">2006-TIOL-165-CESTAT-Mum</a></font></strong>.</em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissioner took the matter to the High Court and the High Court held that the Tribunal indeed had such powers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Against this order of the High Court, the CHA is before the Supreme Court. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue framed by the Supreme Court was, <em>whether it is competent for the Tribunal to invoke Section 129A(5) of the Act where an application under Section 129D(4) has not been made by the Commissioner within the prescribed time and condone the delay in making such application if it is satisfied that there was sufficient cause for not presenting it within that period. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the Supreme Court emphatically held that <em>"it is competent for the Tribunal to invoke Section 129A(5) where an application under Section 129D(4) has not been made within the prescribed time and condone the delay in making such application if it is satisfied that there was sufficient cause for not presenting it within that period." </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This judgement pronounced on 30th October was available only yesterday and we bring it to you today. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=16207" target="_blank">Please see BREAKING NEWS </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Tariff Value of RBD Palmolein, Brass Scrap, Gold and Silver </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has changed the Tariff Values as follows. </font></p>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of the goods </font></p></td>
<td colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value </font></p></td>
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<td valign="top"> </td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Existing </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Changed </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palmolein </font></p></td>
<td valign="top"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">893 </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">USD per MT </font></p></td>
<td valign="top" bgcolor="#CEE7B6"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">889</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per MT </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brass Scrap (all grades) </font></p></td>
<td valign="top"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">4121</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per MT </font></p></td>
<td valign="top" bgcolor="#CEE7B6"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">4096</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per MT </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Poppy Seeds </font></p></td>
<td valign="top"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">5346</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per MT </font></p></td>
<td valign="top" bgcolor="#CEE7B6"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">5346 </font></p>
<p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">There is actually <strong>No Change</strong>, but this is notified again </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold, in any form, in respect of which the benefit of entries at serial number 321 and 323 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed </font></p></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">574.20</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per 10 grams </font></p></td>
<td valign="top" bgcolor="#CEE7B6"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">556</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per 10 grams </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Silver, in any form, in respect of which the benefit of entries at serial number 322 and 324 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed </font></p></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">1097.30</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per kilogram </font></p></td>
<td valign="top" bgcolor="#CEE7B6"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">1039</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per kilogram </font></p></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_096.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 96/2012-Cus.,(N. T.), Dated: October 31, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Chidambaram to Walk Alone</font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/Chidambaram.jpg" alt="Legal Corner Icon" width="157" height="324" hspace="5" border="0" align="center"></font></strong></p>
<p><font color="#FF0000" size="3" face="Verdana, Arial, Helvetica, sans-serif">"Growth is as much a challenge as inflation," ... "If government has to walk alone to face the challenge of growth, then we'll walk alone." </font></p>
<p align="center"><font color="#FF0000" size="3" face="Verdana, Arial, Helvetica, sans-serif">Not Happy with RBI Governor? </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> – Friday's cases</font></strong></font></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"><strong><font color="#663399">Service Tax </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Investigation report by Commissioner indicates that his office could not trace dispatch records for period December 2008 to January 2009 to prove that O-in-O dated 29.12.2008 was served - appellant's claim that they received order only in December, 2010 and filed appeal in March, 2011 before Commr (A) and which is in time as per statute has to be accepted - Matter remanded: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant was served a Show Cause Notice dt. 11.04.2007 for non-discharge of Service Tax on ‘Air travel agent' services. The appellant did not file any reply to the SCN nor they did they appear for the personal hearing before the adjudicating authority. Having no other alternative the adjudicating authority passed an O-in-O dt.29.12.2008. The appeal against such order was filed by the appellant on 30.03.2011 claiming before first appellate authority that the O-in-O was received by them on 30.12.2010 vide Letter No.STC/04-05/Prev/Misc./07-08/Gr.IV/5286, dt.30.12.2010. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Holding that the appeal had been filed after almost two years and which delay could not be condoned, the Commissioner (Appeals) rejected the same and resultantly an appeal came to be filed before the CESTAT. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether when alleged undisclosed income is made subject matter of block assessment, it can be again subjected to regular assessment - NO: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong> issues before the Bench are - Whether once income has been assessed under the provisions of block assessment as per Chapter XIVB, and the income added was deleted on merits by the appellate authorities, whether AO can still proceed to reopen the assessment on the grounds that such income has escaped assessment; Whether when an alleged undisclosed income has been made a subject matter of block assessment, it can be again subject to regular assessment under chapter XIV of the Act and Whether when CIT(A) has ordered as per section 158BA(3) for exclusion of certain items from block assessment, the AO can use it as a license to reopen the assessment in respect of the very same items which were subject matter of the block assessment. And the verdict goes in favour of the assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">In case the job worker is wrongly availing benefit of notification, job worker is liable to pay duty and not supplier of raw material - Revenue and assessee Appeals dismissed : CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>assessee is engaged in the manufacture of various Machineries and Bulkers falling under Chapter 84 & 87 of the CETA, 1985. The assessee is receiving duty paid bare chassis for the fabrication of bulkers. For fabrication of cabins, the duty paid bare chassis are sent to the job worker M/s. Commercial Engineers & Body Builders Co. Pvt. Ltd. and assessee are paying cabin making charges @ Rs.45,000/- per cabin. M/s. Commercial Engineers & Body Builders Co. Pvt. Ltd. are clearing the cabins to the assessee in terms of the exemption Notification No.5/98-CE dated 2.6.1998. Thereafter the assessee is fabricating bulkers and paying appropriate duty on the assessable value of the bulkers. Show cause notice was issued to add Rs.45,000/- in the assessable value of each bulker, which were paid for cabins. Revenue also wants to add 5% of the assessable value of the goods which is being charged by the assessee from M/s. ACC Ltd. as service charges in respect of procurement and co-ordination of services. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Day. </font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
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